The Market Makers

"Companies can achieve market power and realize the returns to winning markets by pushing out the boundaries of the firm. The four main boundaries are its scale, scope, span and speed."

"Pricing is the crucial market-making activity of firms."

"The arbitrage advantage depends on competitors not being able to capitalize on the same opportunities."

"Brokerage is an important component of intermediation. By coordinating exchange between buyers and sellers, the broker reduces their costs of search, and by mediating exchange, the broker reduces the costs of bargaining."

"The key issue facing managers is when to carry out activities within the organization and when to move the activities out to the network."

"The main ways to grow are through diversification, joint ventures and alliances with companies producing different products, and lateral mergers."

"Entering new markets is not as simple as comparing the expected revenues from entry with the investment costs of setting up new operations and then forging ahead. Rather, entry is a strategic problem."

"Success in servicing unmet needs in what is perceived as a niche allows the entrant to build strength in preparation for direct competition."

"Effective head-to-head competition requires outperforming competitors through substantially lower costs of production, superior distribution systems, or more innovative products."

"One of the important payoffs of product innovation is the ability of the innovator to set market standards. By setting standards, companies dictate the rules of engagement."